The good, bad and mysterious elements of Holden's next chapter.

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Holden on: The bumpy road ahead for Australia's own car brand.

“Game Over.” Holden’s marketing team rode the crest of a wave with that slogan for its enormously popular Monaro back in 2002.

But the official catchphrase is not as bold these days.

Holden’s first message following its decision to stop building cars was simply “We’re here”. As the last Commodore left its factory this year, the brand invited customers to ride on for the next stage of its journey with “Let’s go there”. Even if no one knows exactly where that will be.

The boss

The Richmond Tigers jersey proudly displayed in Mark Bernhard’s office is proof the universe does not conspire against him.

Holden’s Managing Director says his team’s 2017 AFL premiership brought rare smiles in a tough year that saw the last locally designed and built cars roll off emotionally charged production lines in October.

In many ways, a year of remembering the brand’s legacy has also been a year to forget. But Bernhard remains positive.

“We are really confident with where we are headed,” he says.

“This is a bigger story for journalists than it is for us.”

Bernhard’s team hopes to finish a rough year on a high, and they have reason to smile again – at least in the short term.

The cars

Holden will get a running start to 2018 with the launch of its new Equinox small SUV and the promise of a European-built Commodore arriving in March. A full-sized seven-seat American SUV in the Acadia will arrive in the second half of the year, helping ease the pain of the Australian Commodore’s withdrawal.

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Bernhard says high-riding SUVs and the Colorado pick-up will represent 70 per cent of Holden sales.

“We are a very different company to what we were 10 or 15 years ago when we were just the Commodore car company. We’ve ended up with a really diverse portfolio,” Bernhard says.

Holden Director of Communications Sean Poppitt adds the marque will have “the best showroom we’ve had in two decades”.

But the local Commodore’s loss will be felt deeply, by executives and dealers wincing at decimated sales figures, and by enthusiasts reluctant to recognise the Opel Insignia as a successor to V8 legends.

Bernhard says enthusiasts should give it a chance, challenging people to “drive the car and then have an opinion”.

In any case, Poppitt says performance-minded traditionalists will be catered for: “If you are [looking for] die-hard V8, rear-drive performance, we will have something for you really soon”.

That might be the next-generation Chevrolet Corvette, a locally adapted version of the V8-powered Chevrolet Camaro... or both.

“I don’t lose any sleep over the product that is coming,” Bernhard says.

“Having driven Equinox, next-generation Commodore and Acadia, we know they are a step-change, and frankly they are a better-driving car than the competition.”

Bernhard’s predecessor Gerry Dorizas promised in 2014 to bring “the best possible products from GM’s global portfolio” to keep Holden as strong as possible. While the plan was to source a mix of cars from Asia, North America and Europe, the latter is likely off the table from 2024.

Peugeot’s PSA parent company now controls Opel and Vauxhall brands supplying Holden with its Astra hatch as well as its upcoming Commodore replacement.

While the very last sentence of PSA’s takeover announcement in March said “existing supply agreements for Holden and certain Buick models will continue”, a more comprehensive report in November made no mention of Holden.

It did say PSA plans to base all future Opel and Vauxhall models on Peugeot platforms and engines from 2024, phasing out existing models “faster than originally expected”.

In other words, next year’s all-new Commodore has a maximum lifespan of six years. The Astra hatch is also likely to be dropped in favour of another small car from the GM portfolio.

While Holden has lost its ability to pick the best cars from a global smorgasbord, Bernhard is confident GM will find the right solution.

“We’re talking about Insignia and Astra hatch, products that are critical for other parts of General Motors,” he says.

“There’s going to be a corporate solution and we will be part of that corporate solution, assuming of course people want passenger cars.”

The dealers

Holden announced plans for a “dealership of the future” this week, injecting more than $150 million into showrooms around the country. The plan is to lift Holden’s image and improve the buying experience – digital displays, quality coffee and extended test-drives are on the menu.

But some buyers will need to travel further to find their next Holden, as the brand has reduced its dealership presence across Australia.

Bernhard won’t say how many businesses lost the right to sell Holden machinery, only that “tough decisions” were made in a “really challenging time”.

“We are talking about people who have put their heart and soul into the Holden business and their Holden franchises... it is a really sensitive topic and we want to treat all of those dealers and their staff with dignity and respect,” he says.

“It’s also a realisation of the size of our business - we have a network that was set up for a higher volume base than we are currently selling. We will still have the second-largest network around the country. I don’t buy that we are not looking after customers.”

The customers

Stefan Jacoby, head of General Motors International, made headlines in January when he told Australian reporters Holden lost its relevance for Australian customers. He was right, as Holden’s local market share slid from 21.6 per cent to 7 per cent in the 15 years since 2002, with year-on-year sales down by almost 12 per cent in 2017.

Bernhard says Holden is “obviously not happy with where sales are”, and pumping up demand is an immediate priority.

Part of the solution falls to Peter Jamieson, a former Telstra executive shaping Holden’s customer service experience.

Overnight test drives and capped-price servicing have been joined by an extended seven-year warranty available until December 31. October sales were stronger than expected, and hopes are high for November and December.

“We’re starting to see the rubber hit the road in terms of sales results, which is pleasing,” Jamieson says.

“[The warranty] is a test for us in the marketplace, it’s territory we haven’t gone into that far before because... we generally are very committed to looking after customers outside of the prescribed warranty period.”

The ACCC might not agree with his sentiments, having found in August Holden “is likely to have contravened the consumer law” in its handling of complaints.

Holden responded by introducing an industry-first replacement and refund scheme for new vehicles affected by serious defects within 60 days of purchase.

Jamieson says the number of customers taking up the option of a replacement vehicle “has been very low”.

The Brand

Quality is a tricky topic for Holden. While locally-assembled Commodores were some of the best-built machines within General Motors, overseas-sourced models such as the South Korean Cruze and Captiva have a less-than-stellar reputation on Aussie roads.

Poppitt says Holden must strive to retain its Australian identity, even if it can only sell foreign cars.

“When people say to me ‘you can’t be an Australian brand’ or ‘you can’t be Holden’ without manufacturing I respect that, but I also respectfully disagree,” the spokesman says.

“Look at Qantas, they don’t build their planes here and they off-shored most of their engineering, does anyone question that they are an Australian brand?

“There is no reason we can’t do the same thing.”

Bernhard says Holden “shouldn’t be ashamed of the fact that we know Australian drivers better than anyone else”, and that engineers will keep fine-tuning cars to local tastes. A $7 million upgrade at Victoria’s Lang Lang proving ground is proof of Holden’s commitment to the cause.

The future

As much as Holden takes root in an Aussie past, it also stretches toward an international future.

The brand is preparing to introduce GM’s OnStar suite of driver assistance packages, bringing in-car WiFi, emergency assistance programs and new convenience features to the range.

It also has an ace up its sleeve in Maven, a fast-growing service providing Uber drivers with affordably short-term leases.

Matthew Rattray-Wood, general manager for Maven in Australia, says Holden is the first car company to have a proper go of ride-sharing in Australia.

“We think it’s pretty exciting and indicative of where Holden is moving in the future as a provider of mobility solutions as opposed to just a car brand,” he says.

2018 Holden Equinox

Drive Comments

DJM61 | 01 Dec 2017 10:11

Ian Smith | 01 Dec 2017 11:46

... the new ZB Holden (it ain't a Commodore, I have driven one) is being released for sale Feb 23 2018 by the way

2ontrack Ian Smith | 03 Dec 2017 22:12

Should be short lived when PSA start changing OPel models

2ontrack Ian Smith | 03 Dec 2017 22:12

Should be short lived when PSA start changing OPel models

Ian Smith | 01 Dec 2017 11:49

ps... Holden have rocks in their heads
and do not have the right to sell cars if they dump the Astra Hatch. It is the BEST car in their fleet at present... 50% better than the Astra Sedan . Funny that, the Hatch is built in Europe and the sedan somewhere in Asia. Hmmm....

Boo | 01 Dec 2017 11:59

As the article pointed out cars other than the Commodore had a less than stellar reputation here for quality. Now there is no local Commodore ALL cars will have a less than stellar reputation. The executive comment about a V8 for die hard fans - well most of us who have had V8 Holdens will never be able to afford this RHD converted Camaro. The high end HSV buyers may but are only a very small part of their market. I agree with the below comment - Game Over.

Titan | 01 Dec 2017 12:25

Holden have left the door wide open for Kia's Stinger.

Derek-00000000 | 01 Dec 2017 14:38

The ZB is also being made in the US and China, and there's a demand for that type of car in South Korea, so it is far from finished in six years. The Cruze was made in Australia btw.

2ontrack Derek-00000000 | 03 Dec 2017 22:16

Henry | 01 Dec 2017 15:31

2ontrack Henry | 03 Dec 2017 22:17

By 2024 there won't be no insignia just PSA models and not available to GM

johnjohni | 01 Dec 2017 17:06

Give up Holden, just prolonging the death.
Simple answer for Australias passion for V8's, crate motors.

W | 01 Dec 2017 21:42

?When people say to me ?you can?t be an Australian brand? or ?you can?t be Holden? without manufacturing I respect that, but I also respectfully disagree,? the spokesman says.
?Look at Qantas, they don?t build their planes here and they off-shored most of their engineering, does anyone question that they are an Australian brand?
Yes actually. Most Qantas shares are owned offshore. It's engineering and maintenance offshore. QANTAS is Australian in only it's origin. Even much of it's onboard staff is recruited abroad.

ibstltr | 02 Dec 2017 08:06

The Qantas comparison isn't relevant. The difference is that Qantas are providing a service, highly tailored to the (traditional white) Australian customer base. A flight with Qantas in terms of service (or lack thereof, some would say) is quite different than flying with Thai, Cathay, China Southern, etc. Holden are simply importing cars with almost zero local input (apart from the size and position of the badges, and maybe some suspension tweaking if you're lucky).
The problem for Holden's marketing team (apart from the lack of decent product) is that there is no common theme. They don't want to be a premium offering (like a Qantas) with vehicles like the Captiva, and they don't want to be a Jetstar with vehicles like the Euro-dore. So the market looking for cheap cars sticks with Korean rubbish (like the Stinger), and the market looking for premium looks at Honda and the European options. Toyota / Ford / Mazda sit in the middle.

ibast | 02 Dec 2017 08:37

Holden sold cars based on Australian Jingoism. The truth is they haven't been very Australian for 30 years, but they really played on on the Australian bit to maximise their market share. Now that their lineup is Korean and French, they are really going to struggle. I'm really not suprised they are counting on the only car in their range that was designed in Japan. They really needed a lineup of Chevys to have much hope. Despite being the worst quality cars in the US, at least Holden buyers felt some affiliation with Chevy. They certainly don't have that affiliation with Deawoo and Peugot. They were the types of brands that Jingoism marketing tried to get them to avoid for all those years.

2ontrack | 03 Dec 2017 22:11

GM now mainly have plants in Asia, US, Mexico and Canada. Majority of cars for Australia will come from Asia.